01927cam a22002417 4500001000600000003000500006005001700011008004100028100002200069245010300091260006600194490004100260500001900301520093900320530006101259538007201320538003601392690006601428710004201494830007601536856003701612856003601649w8603NBER20171213214702.0171213s2001 mau||||fs|||| 000 0 eng d1 aClarida, Richard.14aThe Empirics of Monetary Policy Rules in Open Economiesh[electronic resource] /cRichard Clarida. aCambridge, Mass.bNational Bureau of Economic Researchc2001.1 aNBER working paper seriesvno. w8603 aNovember 2001.3 aThis paper was prepared as a Keynote Address for the ESRC Conference on the Future of Macroeconomics held at the Bank of England Conference Center on April 14, 2000. It uses the empirical framework for formulating and estimating forward looking monetary policy rules developed in Clarida, Gali, Gertler (1998; 1999; 2000;2001) and Clarida (2000) to assess what we know, don't know, and can't tell about monetary policy making in an open economy with an (implicit) inflation target. Among the issues discussed are: the relationship between structural VAR models of monetary policy and exchange rates and estimates of forward looking Taylor rules; the relationship between inflation targeting and leaning against the (exchange rate) wind; why central bankers are averse to even wide - band target zones; quantifying that stresses and costs of a one size fits all monetary policy for the members of a monetary union or currency bloc. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aF31 - Foreign Exchange2Journal of Economic Literature class.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w8603.4 uhttp://www.nber.org/papers/w860341uhttp://dx.doi.org/10.3386/w8603